Tour Operation Management: Analysis of Trends, Development & Strategy

This report provides a comprehensive analysis of tour operation management, focusing on current trends, holiday development stages, contracting methods, brochure design, distribution strategies, and strategic decisions. It examines the impact of recent developments such as responsible tourism, customized services, e-commerce, and environmental awareness on tour operators like Trailfinders Ltd and Kuoni Travel. The report assesses the timescales involved in holiday development, evaluates different contracting methods, and calculates holiday selling prices. It also discusses the planning decisions behind brochure design, alternatives to traditional brochures, and suitable distribution methods. Furthermore, the report evaluates strategic decisions made by different types of tour operators and compares tactical decisions in various situations, offering a thorough overview of the tour operation management landscape.

Tour Operation Management
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Contents
Introduction......................................................................................................................................4
Task 1 Leaflet..................................................................................................................................5
1.1 Analyse the effects of current and recent trends and developments on the tour operators
industry........................................................................................................................................5
Task 2...............................................................................................................................................9
2.1 Assess the stages and timescales involved in developing holidays.......................................9
2.2 Evaluate the suitability of different methods of contracting for different components of the
holiday and different types of tour operator..............................................................................11
2.3 Calculate the selling price of a holiday from given information below..............................13
Task 3 Management report summary............................................................................................15
3.1 Evaluate the planning decisions taken for the design of a selected brochure......................15
3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour
operators and recommend the most appropriate for your tour package....................................17
3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of the tour operator and recommend the most appropriate for your tour
package......................................................................................................................................18
Task 4 Management report summary............................................................................................20
4.1 Evaluate the strategic decisions made by different types of tour operator..........................21
4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations....................................................................................................................................23
Conclusion.....................................................................................................................................26
References......................................................................................................................................27
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Introduction
Management is prior to the business operations due to its direct impact on the outcomes. The
tourismindustry is having based on the market trends and demands so management is essential in
the business operations of a tour company which will be defined in the study. This report is
based on the Trailfinders Ltd and Kuoni Travel which are working in the UK as a tour operator.
This report will analyse current and recent trends and development, and its impact on the tour
operator industry. It will assess the stages used in developing holidays for the Trailfinders Ltd.
and also provide timescales in the tourism development. It will explain different methods of
contracts for different components of tour operations. The brochure is a necessary thing to
promote business and communication product in the customers. Several decisions have to be
taken in the brochure development which will be evaluated in the report. Organisations can use
alternatives to traditional brochures as per the suitability which will be assessed in the study. At
the end of this report will evaluate strategic decisions took by different tour operators. Different
tactical decisions will be compared at the last of the study which can be taken by a tour operator
to make the lead in different situations.
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Task 1 Leaflet
LO1 Understand the tour operators industry within the travel and tourism sector
1.1 Analyse the effects of current and recent trends and developments on the tour
operators industry
Title
Analyse the effects of
current and recent trends
and developments on the
tour operators industry
Introduction
Several kinds of changes are
made in the tourism industry
and especially trends are
regularly changed which has
created a huge impact on the
companies working in the
tourism industry of the UK.
This leaflet is having a focus
on the impacts of current
and recent trends and
development of the tourist
and tourists sector.
Responsible tourism
This is the latest development in
the tourism industry which
supports to the environmental
conservation, economic vitality,
cultural awareness and
involvement of localities.
Government is now providing
support to responsible tourism
which helps to economic
sustainability and to keep the safe
environment of tourist
destinations (Holden, 2016). It
has impacted on the working style
of the tourism industry. It has
increased the involvement of the
small-sized enterprises into the
tour plans which helps in
economical suitability. Tour
planning is also affected by the
environmental awareness and tour
operator are now using those
transportation, accommodation
and foods which are having less
Conclusion
It can be said in a concluded
manner that tourism industry
is now focused on
customisation from mass
deliveries. Several kinds of
tour packages are available in
the tourism which helps
customised services and to
provide better assistance to
customers on a tour.
Responsible tourism and
customised services are
mainly affectedby the
tourism industry.
Impact of recent trends
and development
Customised products and
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services
Customers are having their
own needs and demands on
a particular tour and it is a
current trend to provide
customised services to
tourists on the tour.
Packages and services are
now focused on the
customer’s needs ((Kaurova,
and et. al., 2014).). So it has
impacts on the tour operator
companies to make changes
in their working style and
develop customised tour.
Many of the companies are
using market research to
analyse the customers’
needs on a specific tour
which helps them to plan a
better tour against the
customers’ expectations.
Customised products and
services have impacted on
the working styles of the
tour operator company.
Variety in product range
In the recent era, tour
operator organisation plans
impact on the environment of a
particular tourists sites.
Expansion of cruise market
Most of the tourists are now
having the focus to take leisure
experience on tours and
transportation of tourists is one of
them. It is one of the central
attractions for the tourists on a
particular tour. This trend has
forwarded industry to involve a
cruise trip in each of their tour
plan which can provide special
memorable time to tourists. Many
of the tour operators have
contracted with cruise operators
to provide their services on their
tours.
E-commerce
The Internet is vitally used in the
promotions and booking of tours.
It has provided facility to the
customer to easily book their
seats on tours (Horner and
Swarbrooke, 2016). So it has
created a compulsion on the tour
operator companies to give an
option of online booking to
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a general tour of a particular
country or city. But now
companies are more focused
on a particular tour of which
they are having a range of
packages. It helps to attract
customers and to manage
sales and market share of
the company. Medical,
green, adventure etc. are
types of tourism and most of
the companies are now
planning their tour packages
in all of them. It has
enlarged the working area of
the tourism industry and
different organisations are
merged now in it. Medical
organisations are now also
involved in the tourism
industry.
ATOL protection
It is an Air Travel Organiser
License which is must for
the travel company to
organise an inbound and
outbound tourism. It is a
government certification
which authorised an
customers who can help the tour
operator’s organisation to
maintain sales and profits. Almost
40% of tourists are using online
method for booking for a tour
which shows the vitality of E
commerce.
Environmental awareness
Government and citizen have
become more aware of
theenvironment and global
warming issues are the main
cause of environmental
awareness. It has impacted on the
tourism industry also to make use
alternatives which are creating a
negative impact on the
environment. Transportation and
accommodation are the main
cause which affects the
environment so tour operators are
using cycles and Segways for a
site visit.
Discounts
This is a better way to attract
customers towards the tour plans
and most of the customers prefer
those tour operators which are
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organisation that is
providing protection to their
tourists from losing money.
Brexit
It has made a negative
impact on the tourism
relation in between EU and
UK. It has restricted the free
movement of tourists in
between EU and UK.
providing higher rates of
discounts. It has effected on the
working style and management in
the operations to maintain a cost.
Companies are now focused to
keep the operational cost under
the budget to provide discounts
and to maintain profits also.
Budgeted airlines services
The airline industry is providing
e-commerce facilities to their
customers and they are providing
many types of plans to customers
on the decreased fare. It has
impacted on the tourism industry
to provide discounted airline
services to their customers on the
trips. Customers are now aware of
it and tour operator cannot charge
excess fare so it has impacted on
the working style of tour operator
industry. Contracting in between
tour operators and airline
company is highly affected by
this.
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Task 2
Introduction
The report is based on the stages involved in the holiday planning supports to develop an
exclusive tour of the specific tourist market. Inflation creates a huge impact on the tour plans so
provisions are required in holiday planning for it. The study will provide an analysis of different
contract methods which is effective for different situations. At the end of this report will produce
the cost and selling price of the tour for students.
2.1 Assess the stages and timescales involved in developing holidays
Holidays can be defined as a short period of time in which customers can easily enjoy their
leisure period in an effective manner. Following are the stages required for the development of
holiday packages:
Market research-Market research is the first stage which helps in determining the latest market
trend. The organisation can also use PESTLE analysis for evaluating the external factors which
can be responsible for affecting the holiday packages. Trailfinders can also research various
destinations which are largely demanded by the customers. In addition to this, they can also
design the journey route of the tour plan. 15 days are required for the completion of this phase.
Planning-In the second step, the collected data, and information are used for picking the right
destination and trend in an effective and efficient manner. The planning process includes the
development of objectives, tasks and also determining the resources. Planning process requires
10 days.
Pricing-Pricing of the holiday package includes the cost of flights, trains, hotel rooms and
others. It is important to filter the overall cost of the competitors as this will be helpful in
knowing the latest market price. Penetration pricing strategy can be adopted by the management
of Trailfinders in order to maintain the relationship with their target customers. Skimming price
can also be adopted by Trailfinders in which they can fluctuate their price as per the peak time of
holidays. Selection of pricing strategy can be done in within 8 days (Sharpley and Telfer, 2015).
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Marketing of the tour plan-Marketing is a process for increasing the awareness of services in
the marketplace. Trailfinders can use various advertising methods such as social media
marketing, public speaking, and others. Marketing of tour plan requires 7 days.
Discussion with the experts-It is important to have a discussion with the professional tour
operators for consulting for knowing the critical factors required for the development of holiday
packages. This stage requires 6 days.
Distribution of brochure- In the final step, the distribution of brochures is done in the
marketplace. This will be helpful in creating awareness within the customers. They can easily be
known as the latest destination and plans. The distribution of brochure can be done within 5 days
(Sharpley and Telfer, 2015).
Timescales
Activities Duration (In days)
Market research 15 days
Planning 10 days
Pricing 8 days
Marketing of the tour plan 7 days
Discussion with the experts 6 days
Distribution of brochure 5 days
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2.2 Evaluate the suitability of different methods of contracting for different components of
the holiday and different types of tour operator
Different contracting methods are followed:
Allocation contract- In allocation contract, the tour operator contracts with the hospitality sector.
They are also responsible for providing flights, trains and bus booking to their customers.
Fixed contract-Fixed contract is done before the journey. Tourists cannot be able to cancel their
booking as it can affect the overall budget of travelers.
Charter flights-Tour operator provides charter flights to the VIP people or who can be able to
afford the luxury facility (Cruisejobfinder, 2018).
Tour operators provide the volume of travel services such as accommodation, transportation and
another facility to a wide range of customers.
Outbound operators- Outbound operators plan and work their personal trips working with their
associates in the destination. They sometimes choose the designed tours of inbound operators
and just market to their personal client.
Domestic operators-The domestic tour operators provide transport, accommodation,
entertainment, and other tourism services to their customers. They usually provide a variety of
local tours like national park tours and others.
Inbound operators-Inbound tour operators provide travel arrangement for both groups as well as
independent travelers as a client. They focus on studying the travel incentives of target markets
separate their region (Cruisejobfinder, 2018).
Specialist operators-Specialist operators are responsible for providing exclusive and new
destinations along with multiple facilities to their customer. The client-centered approach of
specialist operators makes them flexible in context of location, facilities. The tour cost of
specialist operators is higher than others because they used to provide untouched destination than
others.
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Direct sell operators-Direct sell operators work like a travel agency in which they used to
directly communicate with their customers. This type of operator earns more than others because
no intermediate clients are required for the delivery of tour services.
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2.3 Calculate the selling price of a holiday from given information below.
Details Amount
Per person cost= 96 euro is the cost of a
twin room (shared by two adults)
96*45*1.12
£11,289.6
(96*42/2*1.12*5)
luxury coach bus cost includes two drivers,
tour manager, fuel and all road and ferry
taxes
£11200
Cost of the tour guide £945
Total cost £16,983.40
mark-up value 33%*17305.96 £5710.966
Sale price cost £31,168
Adjustments-
Given exchange rate= €1.12
Selling price of each person involved overall tour= 31,168/42 = £742
Overall sale price of the tour package= £ 31,168
Each person is required to pay £742 to the tour operator.
Conclusion
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